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Challenges, Opportunities and role of Financial Institutions in Development of Financial System of Afghanistan : A Thematic Analysis Approach


  • Waqas Khan

    (Kardan University)

  • Ajmal Khan

    (Afghan United Bank)

  • Abdul Khaliq Shinwari

    (Kardan University)


The purpose of this study is to evaluate the current financial system of Afghanistan. The study explores the challenges and obstacles faced by financial system and what opportunities this system offer for local and foreign investors. The role of financial institutions is discussed in the development of Af¬ghanistan’s financial system. For the objectives, the study conducted interviews with the market experts and used textual analysis methodology. Based on the interviews, thematic codes were developed in a table through transcribing process. Thematic codes helped in generating thematic networks for further commentary. The study found that the young financial system of Afghanistan faces numerous challenges ranging from security instability to lack of government interest but still the system offers a lot of oppor¬tunities. Money laundering and lack of anti-money laundering policies are considered a serious threat for the stability of the system. Financial institutions, like commercial banks and exchange companies, have a pivotal role in the development of financial system. These institutions can help in developing small and medium enterprises; facilitate flow of funds; stabilizes exchange rates; and increase savings in the economy.

Suggested Citation

  • Waqas Khan & Ajmal Khan & Abdul Khaliq Shinwari, 2018. "Challenges, Opportunities and role of Financial Institutions in Development of Financial System of Afghanistan : A Thematic Analysis Approach," Kardan Journal of Economics and Management Sciences, Kardan University, Department of Economics, vol. 1(1), pages 3-4, January.
  • Handle: RePEc:kar:journl:v:1:y:2018:i:1:p:3-4

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    More about this item


    Financial System of Afghanistan; Growth; Financial Institutions; Commercial banks;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism


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